Germany Says China Trade Could Create Perilous Dependence
The German government approved its first national strategy on China on Thursday, defining the Asian superpower as “a partner, competitor and systemic rival” and calling for a significant reduction of dependency on Chinese goods while still maintaining economic ties worth hundreds of billions of dollars.
The new policy calls for export controls and the screening of investments by German companies doing business in China to protect the flow of sensitive technology and know-how.
Chancellor Olaf Scholz’s government adopted the 64-page document on Thursday, after months of discussions and delays stemming from disagreements within his three-party coalition over how tough their position should be. The strategy echoes themes from the European Union that urge “de-risking” ties with China.
“We do not want to decouple from China, but minimize our risks. This includes strengthening our European economy as well as reducing dependencies,” said Annalena Baerbock, Germany’s foreign minister. “The more diverse trade and supply chains are set up, the more resilient our country is,” she added.
Source: The New York Times
